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Chipotle Mexican Grill (CMG) Gains As Market Dips: What You Should Know

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Chipotle Mexican Grill (CMG - Free Report) closed the latest trading day at $2,671.72, indicating a +1% change from the previous session's end. The stock exceeded the S&P 500, which registered a loss of 0.17% for the day. At the same time, the Dow lost 0.06%, and the tech-heavy Nasdaq lost 0.55%.

The the stock of Mexican food chain has risen by 9.34% in the past month, leading the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 3.98%.

Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. The company is expected to report EPS of $11.34, up 8% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $2.66 billion, showing a 12.27% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $53.21 per share and a revenue of $11.22 billion, signifying shifts of +18.61% and +13.63%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.83% upward. Chipotle Mexican Grill presently features a Zacks Rank of #3 (Hold).

Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 49.72. This denotes a premium relative to the industry's average Forward P/E of 20.83.

We can also see that CMG currently has a PEG ratio of 2.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.07 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 101, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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